The current tenant of Žofín is in a dispute with Prague 1 and has no intention of vacating the building

Prague - Prague 1 is in a legal dispute with the company Agentura NKL, which rents the Žofín Palace. According to the municipality, the contract expired at the end of last year, and the city hall had previously selected a new operator, Zátiší Catering Group, in a tender. However, Jaroslav Páchy, the managing director of Agentura NKL, stated that the existing contract is still valid because it included an option for an additional ten years, he told ČTK. The validity of the contract will be determined by the court. Prague 1 stated that if the company does not vacate the heritage site by the deadline, it will turn to the court. Due to the unclear situation, Charles University has canceled two balls at Žofín.

The lease agreement dates back to 1994, and the currently valid wording is from 2010. According to Páchy, the original contract includes an option for the lessee to extend the lease for another ten years, which the city hall rejects. The newly awarded operator was supposed to take over the palace from the second half of January, but Agentura NKL considers the contract valid and has no intention of vacating it until the court decides.

Prague 1 announced in a press release today that if the palace is not vacated by January 15 in accordance with the terms of the lease, it will seek a legal remedy. The municipality reiterated that the lease expired under the contract on December 31 of last year, and the agency's lawsuits have no chance of changing that. The current tenant, according to city hall information, paid an annual rent of ten million crowns, while Zátiší Catering Group succeeded in the tender with an offer of 20.4 million and is ready to take over the palace immediately after it is vacated.

The first hearing of the main court proceedings in the case will be held at the end of January, according to Páchy. "The court will decide whether the contract is valid," he said. He added that at this moment, he considers the lease valid and the company does not intend to cancel planned events. Internal disputes between the city hall and the tenant, according to the managing director, should not interfere with clients, for whom nothing changes until the court's decision.

Due to the unclear situation, Charles University (UK) has canceled two events at Žofín, namely its representative ball and the medical students' ball from the first faculty of medicine. Spokesperson Lucie Přívětivá stated that considering the unclear situation regarding the lease of the palace, the university would "expose itself to legal risks and jeopardize its good name." Today, ČTK confirmed that the decision is final and based on the assessment of lawyers. Looking for alternative venues is, according to her, unrealistic at this moment, so there will be no balls this year.

The lease of Žofín has been an issue in Prague 1 for years; the existing contract was extended by the city hall led by ODS a month before the municipal elections in 2010. Discussions about further extending the lease for ten years at the request of the tenant also took place before the elections in 2018 and during the previous election period, but in both cases it ultimately fell through after criticism from opposition councilors.

The palace on Slavic Island was originally built, according to the National Heritage Institute (NPÚ) website, as a spa with an inn, which was converted into a family house and restaurant with a large ballroom between 1830 and 1936. The current neo-Renaissance form of the building was acquired during renovations in 1885. Various social events and balls are regularly held in the palace, and the Prague 1 council meets there. The building has been a protected monument since 1971.